George Jefferson established a trust fund that provides $174,500 in scholarships each year in perpetuity for worthy students. The trust fund earns a 2 percent annual rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed?
1. $5,235,000
2. $6,980,000
3. $4,188,000
4. $3,079,227
5. $8,725,000